Motilal Oswal's research report on APL Apollo Tubes
APL Apollo Tubes (APAT) reported another quarter of healthy volume growth at ~12% YoY to 675KMT. APAT’s EBITDA/MT jumped 25% YoY in 2QFY24 aided by operating leverage and 18% YoY improvement in gross profit/MT. The value added product (VAP) mix sustained at ~55% in 2QFY24 underpinned by a gradual ramp up of the Raipur plant.
Outlook
We maintain our FY24/FY25 earnings estimates and value the stock at 33x Sep’25E EPS to arrive at our TP of INR1,930. Reiterate BUY.
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